Min Hee-jin "HYBE, Another Media Play... Unfair Contract in NewJeans Producing"

"'Producing Work Delegation Contract' Is Unfair" Position

Former Adore CEO Min Hee-jin clashed once again over the unfairness of the contract related to the production of the group NewJeans with the parent company HYBE.

Min Hee-jin, CEO of ADOR, is shedding tears while holding the second press conference on the afternoon of the 31st at the Korea Press Center in Jung-gu, Seoul, and announcing her position regarding the ADOR extraordinary general meeting of shareholders held that morning. [Image source=Yonhap News]

On the 30th, the law firm Sejong, representing former CEO Min, stated in a press release, "On the 27th, the Adore board announced that former CEO Min Hee-jin 'will continue to handle NewJeans' producing work.' However, this is completely unrelated to Min’s own intentions, and she has never agreed to any of the reported content; this is a one-sided media play."

Min’s side said, "On the 28th, Kim Ju-young, the current CEO of Adore and chairman of the Adore board, sent former CEO Min a contract titled 'Delegation of Work Agreement,'" adding, "The contract period stated in the delegation agreement is only 2 months and 6 days, from the 27th of last month until November 1 of this year."

They continued, "NewJeans successfully held a fan meeting at Tokyo Dome in Japan this June and is planning a world tour in 2025. It is astonishing to think that producing an idol group preparing for a world tour can be completed in just two months," and argued, "This proves that the Adore directors appointed by HYBE themselves lack understanding of core business."

They also added, "Just looking at the unreasonable contract period, it seems clear that the claim by the Adore board that 'all decisions are the best for NewJeans' is a fabrication and a media play."

Furthermore, Min’s side lamented, "The delegation agreement is full of toxic clauses allowing unilateral termination by Adore’s will."

"Even the contract period of just over two months can be shortened at Adore’s (effectively HYBE’s) discretion. The contract stipulates that Adore can immediately terminate the contract if it judges that former CEO Min’s work performance is significantly lacking. There are no provisions for any objective grounds or criteria," they pointed out.

They added, "It is also stipulated that if maintaining the contract is difficult due to Adore’s management circumstances or if Adore’s CEO deems it necessary, the contract can be immediately terminated. This means Adore (effectively HYBE) can terminate the contract at any time at will. It is a trick that leaves the door open to exclude her from the work at any time and for any reason."

Min’s side appealed, "Sending a contract with such unreasonable terms makes us question whether HYBE genuinely wants former CEO Min to continue producing NewJeans," and stated, "We cannot sign the contract."

Above all, regarding having to reveal their position first again, they explained, "The Adore board (HYBE) requested a signature within three days without any discussion or proposal regarding the production work or negotiation period," adding, "Adore board (HYBE) did not even attempt a single consultation with the contracting party. Since HYBE has been publicizing the issue through the media without internal discussion from the start, we are revealing the facts first to avoid similar attacks this time."

In response to these claims, an Adore official said, "The production contract term aligns with former CEO Min’s internal director term," and "If the term is extended, the contract should be renewed at that time."

The Adore official also said, "The termination clause is a minimum measure to prevent acts that cause significant damage to management if the producer does not perform duties faithfully," and explained, "If there are disagreements about contract clauses, the normal procedure is to negotiate with the Adore board, not to issue a press release."

They added, "The intention was to send a draft contract and discuss it with the CEO, and it is regrettable that this was disclosed in the form of a press release," drawing a line by saying, "This is a routine matter that can be sufficiently handled through internal company discussions."

Min Hee-jin, CEO of ADOR, is attending a press conference for the announcement held on the afternoon of April 25 at the Korea Conference Center in Seocho-gu, Seoul. [Image source=Yonhap News]

The full statement from former Adore CEO Min Hee-jin

We express our position regarding the Adore board’s response about the unfairness of the producing delegation contract.

1. Regarding the claim that the contract was sent because the internal director term ends on November 1 and concerns the remaining period’s role:

The internal director term and producing work are unrelated matters. A producer can handle the role even without being an internal director, and since the roles are completely different, linking them is rather strange.

Kim Ju-young, a HR expert and CEO, surely knows this, and this is just a weak excuse to explain the unreasonable contract terms. The internal director term should naturally be extended and guaranteed for a total of five years according to the shareholder agreement.

2. Regarding the claim that the termination clause is a common provision:

The delegation contract sent by the Adore board contains too many clauses allowing unilateral contract termination without any standards or grounds.

These clauses do not exist in other contracts signed by Adore or HYBE. Even the contract period of just over two months can be shortened at Adore’s (HYBE’s) discretion, making it an unfair contract. Contracts should be made through mutual agreement as a matter of common sense.

3. Regarding the claim that if there are disagreements about the contract, negotiations should have been held with the Adore board instead of issuing a press release:

HYBE has been the party that first announced and leaked information to the media without consultation. The Adore board (HYBE) requested a signature within three days without any discussion or proposal regarding the producing work or negotiation period.

Adore board (HYBE) did not even attempt a single consultation with the contracting party. Since HYBE has been publicizing the issue through the media without internal discussion from the start, we are revealing the facts first to avoid similar attacks this time.

4. Other questionable clauses:

There are many clauses with obvious intent, such as "the Adore board can order the producer to concurrently hold other positions outside of producing duties," and clauses that superficially restrict "profit-making activities" but actually limit broadcasting, publicity, lectures, and so on.

If I refuse to sign the contract, they will claim through media play that I refused to produce, and if I endure and sign despite these unfair terms, they will harass me by citing those unfair clauses as contract violations or claim that signing was a mistake. This is another trap following the unfair shareholder agreement by proposing another unfair contract, so I cannot sign it.